Anheuser- Busch InBev, one of the largest beverage companies on the planet, has report improved profits for the second quarter of 2011.
Total net income for the international consumer product business was $1.45 billion, which represents a 27% improvement compared to the $1.15 billion profit for the same period last year. Sales for this second quarter of 2011 were $9.95 billion, which is 8% higher than last year’s $9.21 billion.
Anheuser- Busch InBev reported some solid growth in its core brands in markets such as China, but results in the United States were mixed. Bud Light enjoyed market share increases in the second quarter and the company expects this trend to continue thanks to its partnership with the NFL, which begins its season shortly.
Among the dozens of brands in the Anheuser- Busch InBev lineup, Budweiser still leads in overall sales, but the brand hasn’t fared well in the United States as of late. Market share has been flat, but according to Anheuser- Busch InBev, the brand is starting to see momentum in the past several months and they expect this momentum to continue with strong advertising and other marketing programs. Budweiser sales in the UK were also lower, but they were higher in China, Russia, and Canada and the stage is set for higher overall Budweiser sales for the 2011 calendar year.
On the positive side, Anheuser- Busch InBev reports that Michelob Ultra, Stella Artois and Shock Top have enjoyed solid increases in sales in the past year. Michelob Ultra benefits from its low calorie and low carb counts, making it a hit with the health- conscious consumer. Stella Artois benefits from its more sophisticated image and is similar to a standard American lager, making it attractive to those who still prefer this style. Shock Top is Anheuser- Busch InBev’s answer to the popular Blue Moon Belgian White produced by Miller/Coors. Blue Moon is still ahead in the sales game, but Shock Top is gaining ground.
Other Anheuser- Busch InBev products such as Beck’s and Lette witnessed sales improvements. The marketing muscle of Anheuser- Busch InBev is generally the reason. Introduction of new variations on these brands (such as Beck’s Lime) as well as “green” and other advertising campaigns and sponsorship has helped fuel brand recognition and sales growth.
All things considered, the first six months of 2011 have to be considered a general success for Anheuser- Busch InBev. The company didn’t quite achieve the sales and profit increases that analysts expected, but results were still better than the same period last year and are respectable for any business that has to deal with such a difficult world economy.
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